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What is Block Trade Multi-Leg Discount?
What is Block Trade Multi-Leg Discount?
Updated over a week ago

To encourage multi-leg block trades for the benefit of risk offsetting, BIT now offers a discount on multi-leg block trades.

Discount Formula:

Discount= Min [sum (long leg notional), sum (short leg notional)] *Trading Fee *50%

Below are examples showing how a) a taker buying call butterfly; b) a taker buying ratio put spread benefit from our Block Trade Multi-Leg Discount:

Example A

BUY 25Dec20-10000-C in 100 BTC

SELL 25Dec20-12000-C in 200 BTC

BUY 25Dec20-14000-C in 100 BTC

Original Fee: 0.0004*(100+200+100)= 0.16 BTC

Discount: Min(200,200)*0.0004*50%=0.04 BTC

Final Fee: 0.16-0.04=0.12 BTC

Example B

BUY 25Sep20-10000-P in 300 BTC

SELL 25Sep20-8000-P in 100 BTC

Original Fee: 0.0004*(300+100)= 0.16 BTC

Discount: Min(300,100)*0.0004*50%=0.02 BTC

Final Fee: 0.16-0.02=0.14 BTC

The Discount will be credited in the form of fee rebate on a monthly basis. Real-time rebate will be supported at a later stage.

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